Gujarat act 010 of 1994 : Gujarat Sales Tax (Amendment) Act, 1994

Section 1. Short title and commencement

1. Short title and commencement.- (1) This Act may be called the Gujarat Sales Tax (Amendment) Act, 1994.

(2) This section and section 9 shall be deemed to have come into force on the 31st March, 1994 and the remaining sections of this Act shall be deemed to have come into force on the 1st April, 1994.

Section 2. Amendment of section 3A of Guj. 1 of 1970

2. Amendment of section 3A of Guj. 1 of 1970.- In the Gujarat Sales Tax Act, 1969 (Guj. of 1970) (hereinafter referred to as "the principal Act"), in section 3A, in sub-section (5), for the words "five paise", the words "ten paise" shall be substituted.

Section 3. Amendment of section 7 of Guj. 1 of 1970

3. Amendment of section 7 of Guj. 1 of 1970.- In the principal Act, in section 7, the words, brackets and figure "of sub-section (1)" occurring at two places shall be deleted.

Section 4. Amendment of section 10A of Guj. 1 of 1970

4. Amendment of section 10A of Guj. 1 of 1970.- In the principal Act, in section 10A,-

(1) in sub-section (1),-

(a) the words, brackets, letter and figures "except the dealer referred to in sub-clause (f) of clause (10) of section 2" shall be deleted;

(b) the words, brackets and figures "and also goods wholly or partially exempt from payment of tax under sub-section (2) of section 49" shall be deleted.

(2) after sub-section (1) but before the table, the following new sub-section shall be inserted, namely:-

"(1A) Where the turnover of all specified sales by any dealer liable to pay tax under section 3A has first exceeded rupees fifty lakhs or the aggregate of the turnover of all specified sales and the turnover of all sales by any dealer liable to pay tax under both the sections 3 and 3A has first exceeded rupees fifty lakhs, in any year in which the Gujarat Sales Tax (Amendment) Act, 1994 (Guj. 10 of 1994) comes into force, and every year thereafter, there shall be levied a turnover tax on taxable turnover of specified sales or the aggregate of taxable turnover of all specified sales and the taxable turnover of all sales effected by him of all taxable goods at the rates specified in the table below.";

(3) in sub-section (4), for the words "the turnover of all sales", the words "the turnover of all sales, the turnover of all specified sales or, as the case may be, the Aggregate of turnover of all specified sales and the turnover of all sales" shall be substituted;

(4) the following explanation shall be added at the end, namely:-

"Explanation.-For the purposes of this section.-

(1) the expression "taxable turnover" means turnover of all taxable goods as derived alter deductions made under sub-section (2); and

(2) the expression "taxable goods" means the goods which are taxable or which would have been taxable under this Act but for exemption granted under sub-section (2) of section 49.".

Section 5. Amendment of section 12 of Guj. 1 of 1970

5. Amendment of section 12 of Guj. 1 of 1970.- In the principal Act, in section 12,-

(1) in clause (1),-

(a) in sub-clause (b), the word "or" shall be added at the end:

(b) after sub-clause (b), the following sub-clause shall be inserted, namely:-

"(aa) that the goods are purchased by him for resale in the course of inter-State trade or commerce and that such goods will be resold within six months from the date of such purchase by himself.’;

(2) in clause (2),-

(a) in sub-clause (c), the word "or" shall be added at the end;

(b) after sub-clause (c), the following sub-clause shall be inserted, namely:-

"(aa) that the goods are purchased on behalf of his principal who is a licensed dealer for resale in the course of inter-State trade or commerce and that such goods will be resold by the principal himself in the course of inter-State trade or commerce within six months from the date of such purchase by the commission agent.".

Section 6. Substitution of section 13 of Guj. 1 of 1970

6. Substitution of section 13 of Guj. 1 of 1970.- In the principal Act, for section 13, the following section shall he substituted, namely:-

"13. No deduction from turnover except on a certificate.- There shall not be deducted from the turnover of sales, sales of goods to a licensed dealer, recognised dealer or to a commission agent holding a permit purchasing on behalf of his principal, as provided in section 7 or 8 unless-

(A) the licensed dealer,-

(i) certifies in the prescribed form that the goods are purchased for resale in the course of export out of the territory of India within six months from the date of such purchase by himself; or

(ii) certifies in the prescribed form that the goods specified in Schedule II-Part B are intended,-

(a) for resale by him within the State of Gujarat otherwise than in the course of inter-State trade or commerce or expert out of the territory of India within six months from the date of such purchase; or

(b) for resale by him in the course of export out of the territory of India within six months from the date of such purchase; or

(B) the recognised dealer certifies in the prescribed form that the goods other than prohibited goods sold to him are goods purchased by him for use by him as raw or processing materials or as consumable stores in the manufacture of taxable goods for sale by him; or

(C) the commission agent certifies in the prescribed form that the goods are purchased on behalf of his principal who-

(i) is a licensed dealer-

(a) and the goods will he resold by the principal himself in the course of export out of the territory of India within six months from the date of such purchase by the commission agent; or

(b) who will resell the goods specified in Schedule II-Part B,-

(i) within the State of Gujarat otherwise than in the course of inter-State trade or commerce or export out of the territory of India within six months from the date of such purchase; or

(ii) in the course of export out of the territory of India within six months from the date of such purchase;

or

(ii) is a recognised dealer, and the goods purchased being goods other than prohibited goods will be used by the principal as raw or processing materials or as consumable stores in the manufacture of taxable goods for sale, and that the commission agent will despatch the goods to his principal or to the principal's order within three months from the date of such purchase by the commission agent.".

Section 7. Amendment of section 19A of Guj. 1 of 1970

7. Amendment of section 19A of Guj. 1 of 1970.- In the principal Act, in section 19A,-

(1) sub-section (2) shall be deleted;

(2) the following explanation shall be added at the end, namely:-

"Explanation.-For the purposes of this section, the expression "oil cakes" shall mean oil cakes other than cotton seed oil cakes.".

Section 8. Insertion of new section 30AA in Guj. 1 of 1970

8. Insertion of new section 30AA in Guj. 1 of 1970.- In the principal Act, after section 30A, the following new section shall be inserted, namely;-

"30AA. Cancellation of certificate of registration in certain circumstances.- Where a registered dealer without entering into a transaction of sale issues to another registered dealer a bill or cash memorandum with the intention to defraud the Government revenue or with the intention that the Government may be defrauded of its revenue the Commissioner may, after making such inquiry as he thinks fit and giving a reasonable opportunity of being heard, cancel the certificate of registration of the registered dealer issuing or accepting such bill or cash memorandum either prospectively or retrospectively from such date as the Commissioner may, having regard to the circumstances of the case, fix:

Provided that notwithstanding the cancellation of a certificate of registration under this section,-

(a) the liability of the dealer shall continue in respect of any tax, penalty or interest for any period prior to the date of the order of the Commissioner cancelling the certificate of registration;

(b) where a dealer, who has purchased goods from the dealer whose certificate of registration is cancelled under this section at any time during the period commencing on the date of cancellation and ending on the date of the order of Commissioner cancelling the certificate of registration, proves to the satisfication of the Commissioner that the tax due in respect of goods sold to him has been paid, such purchase of goods shall be deemed to have been made from a registered dealer.".

Section 9. Substitution of section 42 of Guj. 1 of 1970

9. Substitution of section 42 of Guj. 1 of 1970.- In the principal Act, for section 42, the following section shall be substituted, namely:-

"42. Time limit for assessment in certain cases.- Where a fresh assessment is required to be made in pursuance of any order under section 65, 67 or 69 or in pursuance of an order of any court or authority, such fresh assessment shall be made at any time within three years from the date of such order:

Provided that in computing the period of limitation, any period during which assessment proceedings are stayed by an order or injunction of any court or authority shall be excluded.".

Section 10. Amendment of section 44 of Guj. 1 of 1970

10. Amendment of section 44 of Guj. 1 of 1970.- In the principal Act, in section 44, for the third proviso, the following shall be substituted, namely:-

"Provided that the provisions of the proviso to section 42 shall mutatis mutandis apply to computation of period of limitation specified in this section.".

Section 11. Amendment of section 47 of Guj. 1 of 1970

11. Amendment of section 47 of Guj. 1 of 1970.- In the principal Act, in section 47,-

(1) in sub-section (4A), in the proviso, clause (ii) shall be deleted;

(2) after sub-section (4A), the following new sub-section shall be inserted, namely:-

"(4B) Where a dealer is liable to pay interest under sub-section (4A) and he makes payment of an amount which is less than the aggregate of the amount of tax, penalty and interest, the amount so paid shall be first applied towards the amount of interest, thereafter the balance, if any, towards the amount of penalty and thereafter the balance, if any, towards the amount of tax.".

Section 12. Amendment of section 54 of Guj. 1 of 1970

12. Amendment of section 54 of Guj. 1 of 1970.- In the principal Act, in section 50, for the proviso, the following shall be substituted, namely:-

"Provided that the provisions of the proviso to section 42 shall mutatis mutandis apply to computation of period of limitation specified in this section.".

Section 13. Amendment of section 54 of Guj. 1 of 1970

13. Amendment of section 54 of Guj. 1 of 1970.- In the principal Act, in section 54, in sub-section (1), in clause (aa),-

(1) after the words and figures "assessment under section 41", the words "for the specified year" shall be and shall be deemed always to have been inserted with effect from 1st April, 1993;

(2) the following explanation shall be and shall be deemed always to have been added at the end with effect from the 1st April, 1993, namely:-

"Explanation.-For the purposes of this clause, the expression "specified year" means-

(i) the financial year commencing from the 1st April 1993;

(ii) the calender year commencing from the 1st January 1993;

(iii) Samvat year 2049 commencing from the kartak sud akam;

(iv) co-operative year commencing from 1st October, 1993; or

(v) any such year thereafter.".

Section 14. Amendment of section 66 of Guj. 1 of 1970

14. Amendment of section 66 of Guj. 1 of 1970.- In the principal Act, in section 66, clause (4) shall be deleted.

Section 15. Amendment of section 75 of Guj. 1 of 1970

15. Amendment of section 75 of Guj. 1 of 1970.- In the principal Act, in section 75, in sub-section (1), for the words "two thousand rupees", the words "twenty thousand rupees" shall be substituted.

Section 16. Amendment of Schedule I of Guj. 1 of 1970

16. Amendment of Schedule I of Guj. 1 of 1970.- In the principal Act, in Schedule I,-

(i) for the entry at serial No. 14, the following entry shall be substituted, namely:-

(ii) in the entry at serial No. 15A, in column 2, after the words "doors and windows", the words "handmade papda and pidhia" shall be added.

Section 17. Amendment of Schedule II, Part A to Guj. 1 of 1970

17. Amendment of Schedule II, Part A to Guj. 1 of 1970.- In the principal Act, in Schedule II, in Part A,-

(i) after the entry at serial No. 16, the following new entry shall be added, namely:-

(ii) for the entry at serial No. 33, the following entry shall be substituted, namely:-

(iii) in the entry at serial No. 35, in columns 3 and 4, for the words "twenty one paise", the words "twenty-five paise" shall be substituted;

(iv) in the entry at serial No. 74, in columns 3 and 4, for the words "seven paise", the words "four paise" shall be substituted.

Section 18. Repeal and savings

18. Repeal and savings.- (1) The Gujarat Sales Tax (Amendment) Ordinance, 1994 (Guj. Ord. 8 of 1994) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the principal Act as amended by the said Ordinance, shall be deemed to have been done or taken under the principal Act as amended by this Act.